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A
SUMMER TRAINING PROJECT REPORT
ON
CARRIED OUT AT LAKSHMI PRECISION SCREW LTD.AT ROHTAK.
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE DEGREE OF
Submitted by:
Sumit Sindhu
MBA 5yr(5th sem.)
Roll No. 11
INSTITUTE OF MANAGEMENT STUDIESKURUSHETRA UNIVERSITY KURUSHETRA
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DECLARATION
I SUMIT SINDHU Roll No.11Class MBA-Vth SEM of the
KURUSHETRA UNIVERSITY KURUSHETRA, hereby declare
that the Summer Training Report entitled Analysis Of
Promotion Policy is an original work and the same has not been
submitted to any other institute for the award of any other degree.
A seminar presentation of the Training Report was made on
___________________and the suggestion as approved by the
faculty were duly incorporated
Signature of the Candidate
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Acknowledgement
There is always a sense of gratitude which are express to other for the
selfless services they render during all phase of life. I have completed this
project with the help of different personalities. I feel obliged to all of them.
I feel acknowledgement my indebtedness and deep sense of
gratitude to my expert guide Mr. GULSHAN AHUJA (MARKET
EXECUTIVE, LAKSHMI PRECISION SCREW LIMITED, ROHTAK)
without their guidance and encouraging attitude it would have not possible
for me to complete this project.
I also feel indebtedness to the staff of LAKSHMI PRECISION
SCREWS LIMITED, ROHTAK.
Sumit sindhu
PREFACE
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We cannot achieve anything worthwhile in any field of knowledge
on the of the basis of theoretical knowledge from books in order to achieve
positive and concrete results, the class room learning need to be effectively
wedded to the situation existing outside the class room. This is particularly
true for `Management`. To develop healthy skills in Management, it is
necessary that the theoretical knowledge must be supplemented with the real
practical environment actually; it is the implementation of theory in practice
training that the mean of `programming` itself is realized.
I assign the Lakshmi Precision Screws Ltd., Rohtak for the summer training
which constitutes an integral of the five years Master Degree in
Management in KUK. This training is undergone after the completion of the
Vth sem of the course. I got my training at LPS Ltd. During the four weeks
of my training, I had the opportunity of getting practical insight into the
business world, which enabled me to supplement my theoretical knowledge
of the working capital management which the practical working in one of
leading organizations.
Sumit
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Table of Contents
Particulars Page No.
1. Company Profile 6
2. Objective of Study 8
3. History of company 9
4. Production and sale of company 11
5. objective of study 14
5. Introduction about the Project 17
6 Research methodlogy 22
7, Finding 23
8. Recommendations & Suggestions 24
9. Limitations 25
10. Conclusion 26
11. Bibliography 27
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Introduction About Company
Lakshmi Precision Screws Ltd. Is a symbol of technical perfection? A
leading fastener manufacturer in this part of the country, LPS is the largest
exporter of fasteners from this country. It has the most modern manufacturing
facilities with the latest in automatic and semi-automatic machinery. A fully
aumatic plating and phosphate plant together with heat treatment in dust free
atmospheric condition helps in achieving de-crab free produce with
homogeneous grain structure.
LPS group of companies started in 1968 and subsequently started its
activities in 1972. Lakshmi Precision Screws was converted into a public limited
company in 1971. Initially manufacturing high tensile fasteners, its product range
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has increased steadily to cater to different industrial sectors including
automobiles, machine tools, refrigeration, textile machinery etc, for the export
and domestic markets. The company is one of the leading exporters of industrial
fasteners in India. It has been awarded the certificate of export excellence by the
Engineering Export Promotion Council twice in succession in 1992-93 and 1993-
94, in recognition of its export performance.
The quality products of the company are not only patronized by
customers in but also abroad. About 30% products are exported to USA, Europe,
Japan and other South East Asian Countries. The company has a team of
technically qualified and experienced professionals in the field of manufacturing,
quality management, marketing, finance, materials, personnel and
administration.
LPS has been certified with the coveted ISO-9002 certification by
Bureau Of Indian Standards. Also, the company has now received QS-9000
certification. The company is conforming to the international standards in all
endeavors.
The company has entered into a joint venture agreement with the
Bossard International Switzerland for development of software and
marketing/distribution of new range of fasteners for niche market of electrical and
electronics etc. In 2001-02 the company was awarded the Golden Peacock
Environment Management award which was given by WEF.
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Objective of LPS
The main objective of LPS is to provide customer satisfaction or we can say that
making things according to customer demands.
The Other main Objective of the Company are:
1. To Position himself in the Market
2. To Increase productivity
3. To Innovate new things
4. To double the export and bring foreign currency
5. To get maximum profits
6. To Increase the performance of employees
7. To Development technical and administrative skills.
8. Optimum utilization of human on Resources.
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HISTORY OF L.P.S
1972Established Lakshmi Precision Screws Pvt Ltd as Socket
Head Screws Manufacturer.
1973 Technical tie-up with the German firm M/s Richard
Bergner.
1977 Acknowledge quality source of fastener.
1980 Technical tie-up with M/s Richard Bergner expires.
1983 Secured self-certification status from FORD.
1986 Declared Public Limited Company.
1989 Secured self-certification status from M/s Lakshmi Machine
1992 Established as manufacturer-exporter.
1994 Received Regional Export Award from Engineering Export
promotion Council, (EEPC) India. .
1996 Received Regional Export Award from EEPC for the second
Consecutive year.
1999 Established Plant-II
2000 Received Employment Generation Award from Director of
Industries, Haryana State.
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2002 Testing by National Accreditation Board for Calibration
& Testing.
2004 Installed Bolt Maker (AF 2525) to add production Capacity
to 12200 MT.
2006Self certification status from TELCO.
2008 Golden peacock Award.
2010 Environment award
Outline of the Company
1) Name of the Company : LAKSHMI PRECISION SCREWS LTD.
2) Founded on : March 10, 1972
3) Head Office & Factory : 46/1, Mile StoneRohtak-124001Haryana (INDIA)
4) Chairman & Managing Director : Lalit Kumar Jain
5) Total Assets : 978 Mill. INR (March-2004)($21 Million)
6) Annual Sales : 1123 Mill. INR (March-2004)($24 Million
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PRODUCTION AND SALES OF THE
COMPANY
YEAR PRODUCTION (in tones) SALES IN MILLIONS
92-94 3016 309
94-96 3556 404
96-98 4897 552
98-00 6529 735
00-02 6385 696
O2-04 5753 684
04-06 5607 706
06-08 6556 816
08-10 6165 834
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VARIOUS DEPARTMENT OF THE COMPANY
Marketing Department
Accounts Department
Sales Department
Export Department
Production Department
Purchase Department
Personnel and Administration Department
Manufacturing Department
Quality ontrol Department
Standard Room
Tool Room
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PRODUCTS LIST
1. BOLT & NUTS FOR AUTOMOBILES
A. Engine Parts:
Con Rod
Cylinder Studs
Counter Weights
Cylinder head
Rocker Arm
Engine Mounting
Main Bearing etc.
B. Chasis Parts:
Wheel Bolts
Wheel Hub Bolts & Nuts
Axle Bolts/Pin
Flanged Bolts
Collar Bolt
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OBJECTIVE OF STUDY
1. To innovate new things.
2. To know what is the future prospect of LPS.
3. To know the level of customer satisfaction in Respect to Quality, price,
packing, delivery of products.
4. To know the position of LPS in market with respect other companies.
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LPS Marketing A Brief Outline
Introduction:-
Marketing is the human activity directed at satisfying needs and wants
through the exchange process.
Marketing is the process through which procedure and customers o various
goods are brought together in a exchange relations and the transfer of
ownership takes place. Marketing process starts even before the goods go in
production. It does not end with the sale but continuous with the satisfaction of
consumer is obtained.
Sales Procedure:-
To carry out selling function, it is important to have a qualified and
experienced sales force with a leader who can plan, Organize, direct and control
the selling job objectively. The salesman is an extremely important link in the
chain of distribution. It is sometimes said that the salesmanship is the other
name of persuasion.
The organization sells its product to low types of target market. These are:-
(1) Selling to original equipment manufactures i.e. Industrial Consumers.
(2) Selling to open market or market selling.
(3) The company has established its various sales representatives in
various parts in India; mainly in industrial development cities of India
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like Chennai, Bangalore, Coimbatore, and Kanpur etc. Their main test
is to find out new market or customers for their product.
The overall functions of representative are :-
-To bring offers.
- Making contracts
- Report and figure work
- Market feedback
Marketing Mix Strategy:-
Marketing Mix is one of the major concepts in modern marketing. It can
be defined, as marketing mix is the particular blend of contractible marketing
variables that the firm used to achieve its objectives in the target market.
Now the question arises what variables make up a company marketing mix.
There are actually a great number of marketing variables. Fortunately they can
be classified into a few major groups one of the popular classifications has been
proposed by Mc McCarthy and is called 4Ps
- Product
- Price
- Place
- Promotion
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Promotion Policy
Introduction:
Promotion includes all those activities which are aimed at creating
or stimulating demand. It has been defined as the coordination of all seller
initiated efforts to set up channels of information and persuasion to facilitate the
sale of good or service, or acceptance of an idea. Thus promotion is marketing
activity which is aimed at informing, and inducing the customer to buy the goods
or services. The role of promotion is a marketing mix is very important.
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Promotion plays a very important role in marketing mix. In marketing mix firstly
we decide the corporate objectives and in second step we decide the marketing
objectives, in third step we make marketing strategy, and in fourth step we do all
promotion activity as advertising, sales promotion, personal selling etc. After the
promotion activity customer know about the product and the customer purchase
the product.
In this time the five major tools are present, these are called as promotion mix.
These are advertising, personal selling, sales promotion, publicity and public
relations. Each of these promotion tools has its own characteristics.
1. Advertising is a unilateral and paid form of non-personal mass
communication by a clearly identified sponsor. Usually it is designed to create a
favorable attitude toward the company or product. LPS do the advertisement in
only business magazine and they do personal selling also. They do not
give advertising on television because company products are not useful
for the every person.
2. Sales promotion includes all short term incentives, generally organized on a
temporary and or local basis, and designed to stimulate immediate purchase and
to move sales forward more rapidly than would otherwise occur, and to effect
higher demand. LPS do sales promotion by giving discount in many ways
by cash discount, bulk discount and by giving gifts in the form of monetary
and non-monetary.
3. Personal selling has the objectives of organizing a verbal potential with
customers and to deliver a tailor made message with the short term objectives of
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making a sale. LPS do personal selling, by this way the company can
know about the needs of customers so that they can develop product that
can fulfill customer needs and increase in selling their product and profit.
4. Publicity, like advertising, is an impersonal method of promotion and it
is also addressed to groups of audience. It differs from advertising in the sense
that the seller does not sponsor it. It is the coverage of commercially significant
information regarding the company or its products.
These are five major tools of promotion. In Lakshmi Precision
Screws Ltd., they use mainly advertising, personal selling. And they do
advertising not on routine basis they choose that way the industry people should
aware about their product.
Factors affecting promotion policy
The factors that guide a marketer decision in selecting a promotion policy are:
1. Nature of the product: Promotion policy depends on the nature
of the product. For example, industrial goods need a different kind of
promotion than consumer goods. Industrial goods particularly plant,
machinery and other expensive installations need a heavy emphasis on
personal selling. Advertising and direct mail may perform the international
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4. Buyer readiness stage : The choice of different elements of
promotion is also depend on buyer readiness and awareness of the brand.
Depending on where the buyer is in the hierarchy of response models,
promotion policy can be assembled. Like advertising will play a major role in
creating awareness, demonstration and will help bring about a change at the
affective and behavioral levels while personal selling.
5. Product life cycle stage : PLC will also play a role in deciding on
the promotion policy. For example, in the introduction stage, advertising and
publicity have a significant role and prove to be cost affective in creating
awareness, desire and finally the trial. Even samples play a key promotional
role in industrial products. But in the maturity stage, sales promotion and
personal selling help make the product steer through the competition maze.
Thus it is important to know where the product is in its life cycle.
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Research Methodology Used
Following is the summary of the methodology used for research: -
Research Design - Descriptive
Data Source - Primary
Data Collection Method - Questionnaire
Sample Size - enquiries
Area Covered - North India
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Findings
The findings of this study are:
LPS is on 3rd position in the Fastners Market.
The Quality of LPSs product is good.
The most competitor company of the LPSs is Sundaram Fasteners Ltd.
Sales promotion activities of LPS like advertisement etc. are not so good.
Price Range of LPSs Product can complete competitor like Sundaram
Fasteners Limited.
The Company has been able to attract new customers.
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Recommendations & Suggestions
(1) Timely distribution of incentive should be made
(2) Company should go for E-commerce due to globalization.
(3) Frequent official visits should be encouraged.
(4) Company should be emphasis on advertisement and promotion
scheme specially in print media and business magazine.
(5) Company should provide more gift scheme to the dealer.
(6) Company have to offer Bulk Discount & Cr Facility in
order to remain competent.
(7) Company should stress on Zero-Defect Concept.
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The limitations of this study are as follows: -
(1) Sample size was small therefore chance of error is high.
(2) Some time no cooperation of respondent.
(3) It may be possible that all respondent did not provide absolutely
correct information.
(4) Sampling may not present the exact picture of market. It is just
representative of population.
In the light of all above limitations, I have tried my best to find out
real information from the respondent in a honest manner.
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On the basis of above explanation, I draw conclusion that promotion
policy of LPS is trustworthy and profitable & the sale of the company has
enhanced to a great extent. The company has been able to attract new
customers. In spite of all these things, I believe that all the promotion policy is
important for the company. The company always do promotion program but not
so much that they can attract new customer in large number. The company
should stress on promotion policy to aware and attract the new customers.
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Kotler, Philip, Marketing Management, New Delhi, Prentice
Hall of India Pvt. Ltd.
From Company record
Website: www.1psindia.com
Website: www.google.com
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